Understanding the Economic Factors Influencing Farm Policy Preferences

Authors

Keith H. Coble, Mississippi State UniversityFollow
Thomas O. Knight, Texas A&M UniversityFollow
George F. Patrick, Purdue University
Alan E. Baquet, University of Nebraska-LincolnFollow

Document Type

Article

Date of this Version

12-2004

Comments

Published in Review of Agricultural Economics 24:2 (December 2004), pp. 309 - 321; doi: 10.1111/1467-9353.00021 Copyright © 2002 Agricultural & Applied Economics Association; published by Blackwell/John Wiley. Used by permission. http://www.interscience.wiley.com/jpages/1058-7195

Abstract

A survey conducted in Mississippi, Texas, Indiana, and Nebraska elicited producers’ preferences for various farm policy changes. This permitted examination of the diversity of preferences that single-state studies have not allowed. Five policy choices, including deficiency payments, loan programs, crop insurance, export programs, and disaster payments were examined. Logit model results predicting producer preferences for each of the five dichotomous policy choices are reported. Explanatory variables based on expected utility theory such as risk aversion, price and yield variability, and price–yield correlation are significant in various models.